Silver Lacks Momentum Ahead Of Fed Interest Rate Decision
Silver ETF Stays Range-Bound
Silver is still trying to settle below the significant support level at $23.70 while U.S. dollar is moving higher against a broad basket of currencies. Meanwhile, iShares Silver Trust is trading near the $22.00 level.
The U.S. Dollar Index has recently managed to get above the 96 level and is trying to gain upside momentum ahead of the release of the Fed Interest Rate Decision. In case this attempt is successful, the U.S. Dollar Index will move towards the 96.25 level which will be bearish for silver and gold price today.
Gold has recently made another attempt to settle below the nearest support level at $1830 while SPDR Gold Trust declined below $171.50. If gold manages to settle below $1830, it will gain downside momentum and head towards the support at $1815 which will be bearish for silver.
Gold/silver ratio faced strong resistance at the 50 EMA near the 78 level and pulled back towards the 77 level. In case gold/silver ratio manages to settle below the 77 level, it will move towards the support at 76.50 which will be bullish for silver.
Traders should be prepared for fast moves after the Fed Interest Rate Decision which may have a big impact on the U.S. dollar and U.S. government bonds. If the Fed is too hawkish, silver may find itself under material pressure.
Silver remains stuck in the range between the support at $23.70 and the resistance at $24.00.
In case silver gets above $24.00, it will move towards the next resistance level which is located at $24.25. A successful test of this level will open the way to the test of the resistance at $24.50.
On the support side, silver needs to get below $23.70 to have a chance to gain downside momentum in the near term. The next support level for silver is located near the 20 EMA at $23.50. If silver declines below the 20 EMA, it will head towards the support level at the 50 EMA at $23.25.
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